Shares in media agency M&C Saatchi (SAA) moved 3% higher to 180p following the announcement that AdvancedAdvt (ADVT) had made two new offers to the board last week, although both were turned down.
AdvancedAdvt, the acquisition vehicle headed by serial software entrepreneur Vin Murria, who is also a Saatchi director, made an initial approach on 7 January with an offer of 1.86 AdvtT share for each M&C Saatchi share, which was also rejected.
NEW TERMS
The two new proposals were 2.245 new AdvT shares for each M&C Saatchi share, or 1.633 new AdvT shares plus 40p in cash for each M&C Saatchi share, with a 'mix-and-match' facility enabling shareholders to choose which option they prefer.
Given the current AdvT share price of 98p, the new all-share offer valued M&C Saatchi shares at 220p, while the cash and share offer valued them at 200p - premia of 26% and 14% to M&C Saatchi’s closing price last Friday. AdvT has until 3 February to provide a formal offer.
According to Peel Hunt media analyst Jessica Pok, ‘The latest offer is still lower than our fundamental target price for M&C Saatchi of 230p. Given the strong trading update and the closure of the FCA investigation announced on Friday, we believe it would take a further improved offer for additional stakeholder support.’
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